Dear Valued Clients and Friends,
As we approach the end of the tax year, it’s a great time to explore strategies to minimize your business’s 2024 federal tax liability.
While the upcoming presidential election may introduce uncertainties, we can currently rely on the existing tax laws for the year.
Here are some potential tax-saving opportunities to consider:
Retirement Planning Establish a Retirement Plan: Consider setting up a retirement plan like a SEP, 401(k), or SIMPLE IRA to contribute pre-tax funds.
Evaluate Your Options: Contact us to discuss the best retirement plan for your business and employees.
Asset Acquisitions Maximize Deductions: Take advantage of generous tax write-offs for eligible assets through Section 179 deductions and first-year bonus depreciation.
Timely Purchases: Consider acquiring assets before year-end to benefit from current tax rates and depreciation benefits.
Income and Deduction Timing Optimize Tax Bracket: Defer income or accelerate deductions based on your expected tax bracket for the next year.
Year-End Bonuses: Strategically time the payment of year-end bonuses to minimize your tax liability.
State Income Tax Deduction: Explore the Pass-through Entity Tax (PTET) election to potentially reduce your state income tax burden.
Qualified Business Income (QBI) Deduction Maximize Deduction: Understand the limits and strategies to maximize the QBI deduction, which is scheduled to expire after 2025.
Additional Considerations Qualified Small Business Stock: Explore the possibility of qualifying for a 100% gain exclusion on the sale of eligible stock.
Family Employment: Consider employing family members to reduce self-employment tax liability.
Conclusion These are just a few tax planning strategies that may benefit your business. Please contact us to discuss your specific situation and explore additional opportunities to minimize your tax burden.
Sincerely,
 DUFFY KRUSPODIN, LLP |